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Guide to Understanding the Passive Activity Rules in 2016 (PAR4)

Customer Rating

☆☆☆☆☆

Field of Study

Taxes

Level

Intermediate

Credits

4

Qualifies for

IRSCPE

Overview

Now more than ever, every business owner and real estate investor must determine if they materially participate in any and all trades or businesses, because there are potential implications for the net investment income tax. These extremely complicated rules require an in-depth understanding of election and planning issues that CPAs need to know. The IRS has been very aggressive in audits under the passive loss rules.

Major Topics:

A survey of the 300 pages of regulations under the passive activity loss rules

Understanding and substantiating material participation

An in-depth discussion of when you may or may not make an aggregate election for activities

What does it mean to qualify as a real estate professional?

Learning Objectives

Understand the passive activity rules on a much deeper level

Discuss tax planning issues on these topics with clients

Who should take this course:

Designed for:

CPAs in public accounting who deal with complex individual tax returns

Prerequisite:

Five or more years in public accounting working on complex individual tax returns